Marcellus Shale Public Outreach Marcellus Shale Coalition 1 MARCELLUS SHALE COALITION

Transcription

1 Marcellus Shale Public Outreach Marcellus Shale Coalition 1 MARCELLUS SHALE COALITION

2 Overview PA s History of Oil and Gas Shale Gas Revolution Natural Gas Fundamentals Shale Gas: Steps in Exploration Marcellus Shale Coalition (MSC) 2 MARCELLUS SHALE COALITION

3 PA s History of Oil and Gas Edwin Drake Titusville, 1859 More than 350,000 oil and natural gas wells since PA > 60,000 active natural gas wells and ~ 20,000 active oil wells A solid foundation for 3 MARCELLUS SHALE COALITION

4 Shale Gas Revolution

5 Shale Gas: A Global Phenomenon Source: Energy Information Administration 5 MARCELLUS SHALE COALITION

6 Shale Gas Revolution Across the U.S. Source: Energy Information Administration 6 MARCELLUS SHALE COALITION

7 Marcellus Shale: Geographic Footprint 7 MARCELLUS SHALE COALITION

8 Utica Shale Below the Marcellus Bigger, deeper, denser One of the latest U.S. unconventional energy fields Particularly attractive in OH Success in the Marcellus has led to success in the Utica 8 MARCELLUS SHALE COALITION

9 Growth of Shale Gas trillion cubic feet Source: Energy Information Administration Annual Energy Outlook, early release, January MARCELLUS SHALE COALITION

10 Natural Gas Fundamentals

11 Clean, Abundant, and Versatile Resource Heating and cooling Light duty and heavy duty transportation applications Generation of electricity Combined heat and power applications Feedstock for industries Utilization of liquids 11 MARCELLUS SHALE COALITION

12 Natural Gas Fundamentals Three Industry Segments Upstream: bringing natural gas to the surface (drilling) Midstream: storing and transporting natural gas (pipelines, etc.) Downstream: selling and distributing natural gas (your supplier) Types of Natural Gas Dry Gas: Home, business heating and fueling Wet Gas: Contains Natural Gas Liquids, or NGLs; Raw material for other products (polymers, paints, plastics, fertilizers, etc.) 12 MARCELLUS SHALE COALITION

13 Wet Gas Region of Marcellus Shale Legend Marcellus Shale Formation Wet Gas Region Sources: Pace Global; Equitable Resources, MarkWest, Atlas Energy, Range Resources, and Caiman Energy. 13 MARCELLUS SHALE COALITION

14 Average Composition in Wet Mol% Gas Region Propane, 5.5% Iso Butane, 0.7% Methane, 74.2% Liquids, 25.3% Ethane, 15.6% Normal Butane, 1.4% Iso Pentane, 0.5% Normal Pentane, 0.5% Hexanes+, 1.1% Source: Pace Global; NiSource Gas Transmission and Storage Presentation to WVONGA Spring Meeting May 6, 2010 p.5 14 MARCELLUS SHALE COALITION

15 Shale Gas: Steps in Exploration

16 Shale Gas: Steps in Drilling Land Acquisition/Site Preparation Obtain rights from landowner. Educated landowner is an ideal partner. Production unit - contiguous parcels of land combined for development. Production unit incorporated into a company s drilling program. Site is prepared for drilling activity. 16 MARCELLUS SHALE COALITION

17 Shale Gas: Steps in Drilling Horizontal Drilling More efficient production, smaller footprint. Conductor, surface casing protect drinking water source. Well is drilled vertically and horizontally as much as 5,000 feet. Wellbore is approximately 20 inches in diameter at its widest. 17 MARCELLUS SHALE COALITION

18 Shale Gas: Environmental Protection in Wells Well Casing Multiple layers of steel and cement to ensure redundant protection 1 through fresh water aquifer 2 to depths of ~1,500 feet 3 to final depths Cementing to surface at each layer provides stability and protection, preventing the crossflow of hydrocarbons 25 PA Code, Chapter 78 rules have further strengthened standards 18 MARCELLUS SHALE COALITION

19 Shale Gas: Steps in Completion Hydraulic Fracturing (HF) > 60 years: more than 1 million wells in 27 states 90 percent of oil and gas wells use HF technology 99.5 percent water/sand mix 3 to 5 million gallons of water fractures the shale. Well casing protects water supply PA Chapter 78 upgrades reflect best practices in well casing 19 MARCELLUS SHALE COALITION

20 Environmental Protection Center for Rural PA Study Comprehensive research over two years, published in 2011 Suggested private water well standards are needed Pre-drill testing by natural gas companies a public service 20 MARCELLUS SHALE COALITION

21 Shale Gas: Steps in Completion Hydraulic Fracturing: No Impact on Deepest Aquifers Source: The American Oil and Gas Reporter, July MARCELLUS SHALE COALITION

22 Shale Gas: Steps in Production Site Restoration Involves landscaping and contouring the property as closely as possible to pre-drilling conditions. Property owners generally see: Small wellheads on a level pad Small amount of equipment Two to three water storage tanks Metering system to monitor gas production Courtesy: Range Resources 22 MARCELLUS SHALE COALITION

23 PA Marcellus Wells By County 23 MARCELLUS SHALE COALITION

24 Marcellus Shale Coalition

25 Marcellus Shale Coalition About Us Founded in 2008 Nearly 300 members strong From producers to midstream to suppliers Our Focus Long-term development of resource Protecting the environment and responsible use of water resources Addressing landowner, government and public issues Benefits to our region s future 25 MARCELLUS SHALE COALITION

26 Our Legacy We recognize that to succeed in business, we not only embrace these principles, we live by them each and every day. This will be our legacy. We provide the safest possible workplace for our employees, with our contractors, and in the communities in which we operate; We implement state-of-the-art environmental protection across our operations; We continuously improve our practices and seek transparency in our operations; We strive to attract and retain a talented and engaged local workforce; We are committed to being responsible members of the communities in which we work; We encourage spirited public dialogue and fact-based education about responsible shale gas development; and We conduct our business in a manner that will provide sustainable and broad-based economic and energy-security benefits for all. 26 MARCELLUS SHALE COALITION

27 Site Construction PA Code, Title 25, Environmental Protection Susquehanna River Basin Commission Chapter 806: Review and Approval of Projects Water Withdrawal Registration Delaware River Basin Commission Chapter 901: General Provisions 27 MARCELLUS SHALE COALITION Chapter 78: Oil and Gas Wells Chapter 79: Oil and Gas Conservation Chapter 92a: National Pollutant Discharge Elimination System (NPDES) Permitting, Monitoring and Compliance. Chapter 93: Water Quality Standards Chapter 102: Erosion and Sediment Control Chapter 105: Dam Safety and Waterway Management Chapter 106: Floodplain Management Chapter 110: Water Resources Planning Chapter 210: Blasters Licenses Chapter 211: Storage, Handling and Use of Explosives Chapter 271: Municipal Waste Management Chapter 285: Storage, Collection and Transportation of Municipal Waste

28 Drilling Phase PA Code, Title 25, Environmental Protection Chapter 78: Oil and Gas Wells Chapter 79: Oil and gas Conservation Chapter 92a: National Pollutant Discharge Elimination System (NPDES) Permitting, Monitoring and Compliance. Chapter 93: Water Quality Standards Chapter 105: Dam Safety and Waterway Management Chapter 106: Floodplain Management Chapter 110: Water Resources Planning Chapter 226: Licenses and Radiation Safety Requirements for Well Logging Chapter 245: Admin. of the Storage Tank and Spill Prevention Program Chapter 252: Environmental Laboratory Accreditation Susquehanna River Basin Commission Chapter 271: Municipal Waste Management Chapter 806: Review and Chapter 285: Storage, Collection and Transportation of Municipal Approval of Projects Waste Water Withdrawal Registration Chapter 287: Residual Waste Management Delaware River Basin Commission Chapter 901: General Provisions Chapter 289: Residual Waste Disposal Impoundments Chapter 293: Transfer Facilities for Residual Waste Chapter 297 Incinerator and Other Processing Facilities Chapter 298: Management of Waste Oil Chapter 299: Storage and Transportation of Residual Waste 28 MARCELLUS SHALE COALITION

29 Hydraulic Fracturing PA Code, Title 25, Environmental Protection Chapter 78: Oil and Gas Wells Chapter 79: Oil and gas Conservation Chapter 92a: National Pollutant Discharge Elimination System (NPDES) Permitting, Monitoring and Compliance. Chapter 93: Water Quality Standards Chapter 95: Wastewater Treatment Requirements Chapter 105: Dam Safety and Waterway Management Chapter 106: Floodplain Management Chapter 110: Water Resources Planning Chapter 245: Admin. of the Storage Tank and Spill Prevention Program Chapter 252: Environmental Laboratory Accreditation Chapter 271: Municipal Waste Management Susquehanna River Basin Commission Chapter 285: Storage, Collection and Transportation of Municipal Chapter 806: Review and Waste Approval of Projects Chapter 287: Residual Waste Management Water Withdrawal Registration Chapter 289: Residual Waste Disposal Impoundments Delaware River Basin Commission Chapter 901: General Provisions Chapter 293: Transfer Facilities for Residual Waste Chapter 297 Incinerator and Other Processing Facilities Chapter 298: Management of Waste Oil Chapter 299: Storage and Transportation of Residual Waste 29 MARCELLUS SHALE COALITION

30 Reclaimed/Completed Site PA Code, Title 25, Environmental Protection Chapter 78: Oil and Gas Wells Chapter 79: Oil and gas Conservation Chapter 92a: National Pollutant Discharge Elimination System (NPDES) Permitting, Monitoring and Compliance. Chapter 93: Water Quality Standards Chapter 102: Erosion and Sediment Control Chapter 105: Dam Safety and Waterway Management Chapter 106: Floodplain Management Chapter 110: Water Resources Planning Chapter 271: Municipal Waste Management Chapter 285: Storage, Collection and Transportation of Municipal Waste 30 MARCELLUS SHALE COALITION

31 Midstream PA Code, Title 25, Environmental Protection Chapter 102: Erosion and Sediment Control Chapter 105: Dam Safety and Waterway Management Chapter 106: Floodplain Management Chapter 110: Water Resources Planning Chapter 121: Air Resources General Provisions Chapter 122: National Standards of Performance for New Stationary Sources Chapter 123: Standards for Containments Chapter 127: Construction, Modification, Reactivation and Operation of Sources Chapter 129: Air Resources Standards and Sources Chapter 245: Admin. of the Storage Tank and Spill Prevention Program Chapter 285: Storage, Collection and Transportation of Municipal Waste 31 MARCELLUS SHALE COALITION

32 Environmental Protection Air Quality Standards Short-term monitoring in Northeastern, Southwestern, and North Central PA: [D]id not identify concentrations of any compound that would likely trigger air-related health issues associated with Marcellus Shale drilling activities. Air quality standards tightly-regulated: Gas Processing Plants: Plan approval/air permit Compressors: Covered by GP-5 Companies exploring bifuel rigs to reduce use of diesel 32 MARCELLUS SHALE COALITION

33 Transparency MSC Commitment to FracFocus.org Bolsters PA Requirements FracFocus.org is a Project of the Groundwater Protection Council and the Interstate Oil & Gas Compact Commission 33 MARCELLUS SHALE COALITION

34 Pennsylvania Jobs, Pennsylvania Workers PA Department of Labor and Industry 239,000 employees in Marcellus and related industries $80,328 average core industry wage $33,100 higher than PA avg. $64,060 average ancillary industry wage $16,800 higher than PA avg. 7 in 10 hires are from Pennsylvania; Confirmed by MSC member survey Source: PA Department of Labor and Industry, March MARCELLUS SHALE COALITION

35 Diverse Job Opportunities Source: Marcellus Shale Coalition Membership Survey, May MARCELLUS SHALE COALITION

36 Marcellus Multiplier Fast Facts $5+ million investment to produce each well 400+ individuals within nearly 150 different occupations needed to complete and produce gas from a Marcellus well (MSETC, 2010) 36 MARCELLUS SHALE COALITION

37 Thank you! Marcellus Shale Coalition Twitter.com/marcellusgas Facebook.com/marcelluscoalition 37 MARCELLUS SHALE COALITION